The rupee opened lower at 66.78 per dollar as against the last weekend's level of 66.76 at the Interbank Foreign Exchange market and dropped further to 66.86 on month-end dollar demand from importers mainly oil refiners.

However, it recovered afterwards to 66.62 on fag-end selling of dollars by exporters before settling at 66.67, showing a gain of nine paise or 0.13 percent. It had dropped by 44 paise or 0.66 percent in the previous two trading days.

The local currency moved in a range of 66.62 and 66.86 per dollar during the day. The dollar index was higher by 0.16 percent against a basket of six currencies in the late afternoon trade.

The dollar was mainly higher in the late afternoon trade today, as investors prepared for potentially market- moving events later this week, including the closely watched US nonfarm payrolls report and the European Central Bank decision.